Foreign nationals seeking to establish and operate businesses in Nepal must obtain a business visa. The business visa allows foreign investors to legally reside in Nepal while managing their commercial enterprises. Understanding the cost structure, documentation requirements, and application process is essential for foreign entrepreneurs planning to invest in Nepal.
Government Fees for Business Visa
The Department of Immigration, Government of Nepal, has established a tiered fee structure for business visas based on the investment amount. The fees are regulated under the Immigration Act, 2049 (1992) and Immigration Regulations, 2051 (1994).
Fee Structure Based on Investment Amount
| Investment Amount | Visa Fee | Duration |
|---|---|---|
| Less than NPR 10 Million | USD 30 per month | Monthly basis |
| More than NPR 10 Million | USD 300 per year or USD 10 per month | Annual or monthly basis |
Foreign investors whose total investment in Nepal is less than NPR 10 million must pay USD 30 for each month of stay. This fee structure applies to smaller business ventures and startups that do not meet the higher investment threshold. The monthly payment system provides flexibility for investors who may not require extended stays initially.
For substantial investments exceeding NPR 10 million, the government offers a more economical annual rate of USD 300, which effectively reduces the monthly cost to approximately USD 10. This preferential rate encourages larger foreign direct investments and provides cost savings for serious investors committed to long-term business operations in Nepal. Investors can choose between paying USD 300 annually or USD 10 monthly, depending on their preference and cash flow considerations.
The investment amount is calculated based on the registered capital in the company registration documents and verified through the Foreign Investment and Technology Transfer Act, 2075 (2019). The Department of Industry issues the investment verification certificate that determines which fee category applies to the applicant.
Required Documents for Business Visa Application
The Department of Immigration requires specific documentation to process business visa applications. All documents must be submitted in their original form or as certified copies. The documentation requirements are established under the Immigration Regulations, 2051 (1994) and subsequent departmental directives.
Complete Documentation Checklist
- Receipt of Online Application: Applicants must complete the online visa application through the Department of Immigration’s official portal. The system-generated receipt serves as proof of application submission and contains a unique application reference number required for tracking and processing.
- Copy of Company Registration: A certified copy of the company registration certificate issued by the Office of Company Registrar under the Companies Act, 2063 (2006) must be submitted. This document proves the legal existence of the business entity in Nepal.
- Copy of PAN/VAT Certificate: The Permanent Account Number (PAN) certificate issued by the Inland Revenue Department is mandatory. For businesses exceeding the VAT threshold, the Value Added Tax (VAT) registration certificate must also be provided as per the Income Tax Act, 2058 (2002).
- Copy of Share Certificate: Share certificates demonstrating the foreign investor’s ownership stake in the Nepali company must be submitted. These certificates are issued by the company and verify the investment amount claimed in the application.
- Copy of Industry Registration Certificate: Businesses must obtain registration from the Department of Industry under the Industrial Enterprises Act, 2076 (2020). The industry registration certificate confirms compliance with sectoral regulations and investment approval.
- Copy of Passport and Recent Nepalese Visa: A clear copy of the applicant’s valid passport (biographical page and pages showing previous Nepali visas) must be provided. The passport must have at least six months validity remaining. Copies of the most recent Nepalese visa demonstrate the applicant’s current legal status.
- Bio Data of Investor: A comprehensive curriculum vitae or bio-data of the foreign investor must include educational qualifications, professional experience, current address, and contact information. This document helps immigration authorities assess the applicant’s background and business credentials.
All documents in foreign languages must be translated into Nepali or English by certified translators. The Department of Immigration may request additional documents during the verification process depending on the nature of the business and investment sector.
Service Charge for Professional Assistance
Professional service providers assist foreign investors with the complex process of business incorporation and visa acquisition. The service charges vary based on the industry type and complexity of the business structure.
Professional Service Fee Structure
| Service Type | Industry Category | Service Charge | Exclusions |
|---|---|---|---|
| Business Incorporation + Business Visa | IT Company | NPR 250,000 | Government fees |
| Business Incorporation + Business Visa | Normal Industries | NPR 350,000 | Government fees |
The service charge for IT companies is set at NPR 250,000, excluding all government fees. Information technology companies benefit from lower service charges due to Nepal’s policy of promoting the IT sector as outlined in the Information Technology Policy, 2067 (2010). IT companies typically face fewer regulatory hurdles and streamlined approval processes.
For normal industries, including manufacturing, trading, services, and other sectors, the service charge is NPR 350,000, excluding government fees. These industries often require more extensive documentation, multiple departmental approvals, and compliance with sector-specific regulations under various acts such as the Industrial Enterprises Act, 2076 (2020) and the Foreign Investment and Technology Transfer Act, 2075 (2019).
The service charges cover professional fees for legal consultants, documentation preparation, liaison with government departments, and follow-up throughout the application process. Government fees, including company registration fees, industry registration fees, PAN/VAT registration fees, and visa fees, are additional costs borne directly by the client.
Scope of Work Provided by Service Providers
Professional service providers offer comprehensive assistance throughout the business establishment and visa acquisition process. The scope of work encompasses multiple stages of regulatory compliance and documentation.
Obtaining Recommendation from Department of Industry
The first step involves securing a recommendation letter from the Department of Industry. Service providers prepare the investment proposal, compile required documents, and submit the application to the Department of Industry under the Foreign Investment and Technology Transfer Act, 2075 (2019). The recommendation letter is essential for foreign investment approval and subsequent company registration. The process includes:
- Preparation of investment proposal with business plan
- Compilation of investor documents and credentials
- Submission of application to Department of Industry
- Follow-up with department officials for approval
- Obtaining the official recommendation letter
Complete Business Incorporation Process
Service providers handle the entire company registration process with the Office of Company Registrar. This includes drafting the company’s Memorandum of Association and Articles of Association in compliance with the Companies Act, 2063 (2006). The incorporation process involves:
- Name reservation for the proposed company
- Drafting constitutional documents (MOA and AOA)
- Preparation of shareholder agreements
- Filing incorporation documents with Company Registrar
- Obtaining company registration certificate
- Registration for PAN with Inland Revenue Department
- VAT registration if applicable
- Opening company bank account
Assisting with Application Processing from Department of Industry
After company incorporation, service providers assist with the formal industry registration process. The Department of Industry issues the industry registration certificate under the Industrial Enterprises Act, 2076 (2020). This stage includes:
- Submission of company registration documents
- Preparation of industry registration application
- Coordination with Department of Industry officials
- Addressing queries and providing additional information
- Obtaining industry registration certificate
- Securing investment verification documents
Obtaining Business Visa
The final stage involves applying for and securing the business visa from the Department of Immigration. Service providers prepare the visa application, compile all supporting documents, and submit the application on behalf of the foreign investor. The process includes:
- Completion of online visa application
- Compilation of all required documents
- Submission to Department of Immigration
- Payment of applicable visa fees
- Follow-up for visa approval
- Collection of visa and passport
The business visa is typically issued for the duration corresponding to the fees paid, either monthly or annually based on the investment amount. Visa holders must comply with the conditions specified in the Immigration Act, 2049 (1992) and maintain their business operations to retain visa validity.
Legal Framework Governing Business Visas
The legal framework for business visas in Nepal is established through several key legislations. The Immigration Act, 2049 (1992) provides the primary legal basis for visa issuance and immigration control. The Immigration Regulations, 2051 (1994) detail the procedural requirements and fee structures for different visa categories.
The Foreign Investment and Technology Transfer Act, 2075 (2019) governs foreign investment in Nepal and establishes the approval process for foreign investors. This act replaced the previous Foreign Investment and Technology Transfer Act, 2049 (1992) and introduced more investor-friendly provisions. The Industrial Enterprises Act, 2076 (2020) regulates industrial registration and operations, requiring all businesses to obtain industry registration certificates.
The Companies Act, 2063 (2006) governs company formation, registration, and operations in Nepal. Foreign investors must establish companies under this act to conduct business activities. The Income Tax Act, 2058 (2002) mandates PAN registration for all business entities and establishes tax obligations for companies operating in Nepal.
Investment Thresholds and Implications
The NPR 10 million investment threshold significantly impacts the visa fee structure. This threshold is calculated based on the registered capital shown in the company’s constitutional documents and verified by the Department of Industry. Foreign investors should carefully consider this threshold when determining their initial investment amount.
Investments below NPR 10 million result in higher monthly visa costs (USD 30 per month or USD 360 annually), while investments exceeding NPR 10 million qualify for the reduced rate (USD 300 annually). The difference of USD 60 annually may seem modest, but it reflects the government’s policy of encouraging substantial foreign investments.
The investment amount must be genuine and verifiable through bank statements, fund transfer documents, and audited financial statements. The Department of Industry and Department of Immigration may verify the actual investment through various means, and false declarations can result in visa cancellation and legal consequences under the Immigration Act, 2049 (1992).
Visa Validity and Renewal
Business visas are issued for specific durations based on the fees paid. Investors paying monthly fees receive visas valid for one month, while those paying annual fees receive visas valid for one year. Visa holders must apply for renewal before expiration to maintain legal status in Nepal.
The renewal process requires submission of updated company documents, tax clearance certificates, and proof of ongoing business operations. The Department of Immigration may request additional documents such as audited financial statements, employee records, and evidence of business activities to verify that the company is genuinely operational.
Failure to renew the visa before expiration results in overstay penalties under the Immigration Regulations, 2051 (1994). Overstay fines are calculated on a daily basis and can lead to deportation and future entry bans for serious violations.
Compliance Requirements for Business Visa Holders
Business visa holders must comply with various legal obligations to maintain their visa status. The primary requirement is maintaining active business operations in Nepal. The company must file annual returns with the Office of Company Registrar under the Companies Act, 2063 (2006) and submit tax returns to the Inland Revenue Department under the Income Tax Act, 2058 (2002).
Business visa holders cannot engage in employment with other companies or undertake activities outside the scope of their registered business. The visa is specifically tied to the registered company, and holders must notify the Department of Immigration of any changes in business structure, ownership, or operations.
The Foreign Investment and Technology Transfer Act, 2075 (2019) requires foreign investors to maintain their investment for a minimum period and prohibits unauthorized transfer of shares without prior approval from the Department of Industry. Violations can result in visa cancellation and investment-related penalties.
Sector-Specific Considerations
Different business sectors face varying requirements and restrictions under Nepali law. The Foreign Investment and Technology Transfer Act, 2075 (2019) maintains a negative list of sectors where foreign investment is prohibited or restricted. These include certain retail trading activities, personal services, and sectors reserved for Nepali nationals.
IT companies benefit from preferential treatment under the Information Technology Policy, 2067 (2010) and subsequent directives. The government actively promotes IT sector investment through tax incentives, simplified approval processes, and lower service charges. IT companies may also qualify for special economic zone benefits if they establish operations in designated IT parks.
Manufacturing industries must comply with environmental regulations under the Environment Protection Act, 2053 (1997) and obtain necessary environmental clearances. Industries involving natural resources, minerals, or forest products face additional scrutiny and require sector-specific approvals from relevant ministries.
What is the minimum investment required for a business visa in Nepal?
There is no legally specified minimum investment for business visa eligibility. However, the investment must be genuine and sufficient to establish a viable business operation. The NPR 10 million threshold only affects the visa fee structure, not eligibility.
Can I apply for a business visa before company registration?
No, company registration and industry registration must be completed before applying for a business visa. The Department of Immigration requires company registration certificates and industry registration certificates as mandatory documents for business visa applications.
How long does the business visa application process take?
The complete process, including company incorporation, industry registration, and visa issuance, typically takes 30 to 60 days. The timeline depends on document completeness, departmental workload, and complexity of the business structure.
Can family members obtain visas based on my business visa?
Yes, dependent family members can apply for dependent visas based on the primary business visa holder’s status. Spouses and children can obtain dependent visas by submitting relationship proof documents and the primary visa holder’s business visa.
Is the business visa convertible to permanent residency?
Business visa holders may apply for permanent residency after maintaining continuous legal residence and business operations for specified periods. The Immigration Act, 2049 (1992) and regulations provide pathways to permanent residency for long-term investors meeting specific criteria.
What happens if my business closes or fails?
If the business ceases operations, the business visa becomes invalid. Visa holders must either establish a new business, convert to another visa category, or leave Nepal. The Department of Immigration must be notified of business closure.
Can I hold multiple business visas for different companies?
A foreign national can invest in multiple companies in Nepal, but the business visa is typically issued based on the primary investment. Additional investments can be documented, but separate visas for each company are not issued.
Are there any tax implications for business visa holders?
Business visa holders who reside in Nepal for more than 183 days in a fiscal year become tax residents under the Income Tax Act, 2058 (2002) and must pay taxes on worldwide income. Professional tax advice is recommended.
